I had been unaware of this. It sounds potentially disastrous for startups in general, but certainly space startups.
4 thoughts on “Penalizing Innovation”
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I had been unaware of this. It sounds potentially disastrous for startups in general, but certainly space startups.
Comments are closed.
If this is correct, expect a wave of bankruptcy and small business closures. Typical big-government overreach.
Immediately afterwards, politically connected big corporations will purchase the IP of bankrupt small companies for pennies (perhaps singular) on the dollar and be exempt from the tax.
The numbers make no sense. The “phantom income” imputed shouldn’t be more than the company’s net profit before tax, which is the only taxable income a company has. Unless the corporate tax rate has been raised to 92.5%, there’s no way in hell a company putting $100,000 into R&D could be expected to pay $92,500 in taxes.
But not allowing R&D as a business expense automatically puts any business depending on research out of business.- except for big aerospace companies, whose “IR&D” is “reimbursed” on any of their existing contracts. This is an economic killer.
The GOP is the party of Big Business. The Democrats are the party of Big Government. Together, as the Uniparty, they want to roll all employees into huge unionized enterprises, and to hell with entrepreneurial creativity.
There is NO ONE at the national level promoting small businesses.